This information is available for two pumps Pump APump B Installed cost $15,000 $22,000 Service life, years 2 5 What is the annual rate of return for the two pumps to be competitive? Neglect salvage value. Which pump would you recommend? Competitiveness refers to the installed cost plus the amount to be invested at installation time in order to earn sufficient interest over the service life to replace the pump at the original cost (i.e., capitalized cost) ChE 4253 - Design I

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